Abstract
owards the end of the 20th century, as part of the encompassing structural reforms that modernized the Mexican economy after decades of an obsolete imports-substitution model, overregulated economic sectors, and state-controlled productive sectors, the creation of an individual savings account pension system to replace the “pay-as-you-go” anachronic pension system prevalent since 1943, was necessary given the country’s demographic trends. The analysis presented in this paper uses a Markov-switching model to obtain the Sharpe ratio of different SIEFOREs portfolios for different subperiods and volatility regimes (normal and crisis). The results confirm that not all SIEFOREs are good (or bad) performers all the time. This evidence suggests that awareness of market conditions conveys information that can support rational decisions about when to change savings from SIEFOREs that are good performers during normal times to good performers during crisis periods. While these are preliminary findings, they represent a stating point for further analyses that should contribute to improved savers'decisions.
Highlights
E Sharpe ratio of different SIEFOREs portfolios for different subperiods and volatility regimes
This paper explores what would be the implications of having better informed decision-makers who advise Mexican workers on who to use SIEFOREs
Several papers mentioned in the brief review presented consistently suggest that more informed decisions by investors would result in an increased competitiveness of SIEFOREs
Summary
Theknown main penditure inbehavior marketing, thethe fact that funds are and managed by a well objective this paper is to show that under circumstances of financialofgroup or insurance company, andcertain the number of salesevidence represendependency between the variables studied may be found. To ascertain this objective tativesfunctions, that these employ. El modelo describeofel SIEFOREs agregado de reclamaciones como un fenómeno adverso para el patrimonio de una aseguradora, que pue[2] de presentarse durante un período tiempo [0,T]. The last section concludes the analysis, summarizes the findings and suggests some guidelines on how decisions makers may improve the SIEFOREs system considering an information availability perspective
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